Mutual fund sales continued their slump in May even as markets climbed back according to the latest numbers from the Investment Funds Institute of Canada.
IFIC’s sample of preliminary data projects net new sales for May at between minus $900 million and minus $500 million. However, IFIC also estimates that net assets of the industry at the end of May will be in the range of $385 billion to $390 billion, up approximately 2.1% from last month’s total of $380.2 billion.
“Net redemptions in May improved from the previous month by approximately $900 million, representing a 57% reduction,” revealed Tom Hockin, IFIC’s president & CEO. “Assets increased by 2.1% to about $388 billion, marking the second straight month of market growth for the industry.”
But despite the market gain in assets, some of the industry’s biggest firms still had a hard time luring investors back to the market. RBC Funds recorded the biggest net redemptions, of $207 million. It was followed by Scotia Securities, AGF, Fidelity and Investors Group, all of whom turned in more than $100 million in monthly net redemptions.
A few firms enjoyed some positive sales action though, with Dynamic leading the way. It managed $96 million in net sales for the month. Net sales were also evident at TD, Guardian, Manulife and Brandes.